Laureate-Affiliated University in Chile Loses Last Accreditation Appeal

January 24, 2014

A Chilean university affiliated with the for-profit education company Laureate International Universities has lost its final bid to appeal the revocation of its institutional accreditation. The university reported on its website that the National Education Council has rejected its final appeal, a decision that means that new students will be ineligible for government-backed loans.

In deciding not to renew the Universidad de Las Américas' accreditation in October, the National Accreditation Commission cited the 34,000-student university’s unsatisfactory graduation rates and its rapid enrollment growth: while the number of students rose by 36 percent over three years, the increase in instructors failed to keep pace. The commission also raised concerns about the finances of the university, finding that while spending on academic salaries was low, the amount spent on leases and educational and administrative services provided by companies related to Laureate was substantial. Under Chilean law universities must be nonprofit but they may be affiliated with for-profit entities like Laureate that they contract with for services.

UDLA plans to reapply for institutional accreditation but must wait two years before doing so.

“For more than 25 years, UDLA has played a significant role in expanding access to quality higher education for tens of thousands of students who would otherwise not have had the opportunity to pursue a university degree,” Laureate said in a statement. “As institutional accreditation is voluntary in Chile, this ruling will not stop UDLA from continuing to provide its students with strong academic and career-oriented programs."